surprise surprise increased offer, page-45

'I'm in agreement with Nobull re exposure to Sandpiper. A BON share converted to MAK indisputably goes from 45% exposure to Meob/Sandpiper down to 16%. Yes an existing UCL share will get diluted eventually however will always have overall exposure to 45% of Meob/Sandpiper.'

Sorry seals this is not correct. UCL will always have 45% exposure of Meob/Sandpiper but you and YOUR investment will not. To take Meob/Sandpiper to production (and lets face it thats the aim, not to BFS stage), there will be significant dilution to UCL. Even if they increase to a couple of cents (with the 2 billion shares on issue after upcoming placement), the funds required to take to production will dilute possibly 3 or 4 times even more maybe. Your own 45% has just become 10% or less.

With MAK your 16% will see minimal dilution and exposure to Wonorah/Arawurra and the other potential tenements.

Let's also consider shareprice appreciation. With the number of shares UCL are considering issuing just to get to BFS dont expect strength in shareprice for UCL. MAK on the other hand is issuing for production and will benefit in shareprice as production nears closer.

UCL also have the added complexity of only owning 45% of the project and lack of outright control. MAk own theirs outright and total control. I have little doubt that MAK will be eyeing off UCL in the future. The problem for UCL will come after BFS. MAK can offer a revenue stream and I am sure they will want to come to an arrangement with UCL for a majority stake in the project. From UCLs point of view it would be the smartest move as well, as they will benefit from full funding of the project and realising of the project profits and no longer battling MAK for control thereby making funding for them difficult on their own.

I dont believe UCL will have much of a choice down the track. They will have to co-operate with MAK.

PS all this relies on a strengthening RP price. If it drops from here medium-term (which I dont believe will happen) then neither project will get off the ground.